How Outages and Downtime Impact Industrial Distribution

Unexpected outages and unplanned downtime are the types of issues that keep facility management professionals up at night. This stress comes as no surprise, as these issues can disrupt business continuity and severely hamper industrial distribution capabilities.

Below, we examine the true cost of outages and downtime as it pertains to industrial distribution. Our experts also provide you with a proven way of preventing outages and downtime so that your facility can maximize productivity. Read on to learn more.

The Cost of Unplanned Downtime

While the exact cost of unplanned downtime will vary depending on the scope of your operations and the industry that you operate within, experts agree that any unexpected outages can decimate profit margins.

According to Forbes, unplanned downtime costs manufacturers approximately $50 billion per year. With so much at stake, it is essential that you place preventing downtime at the very top of your priority list.

Consequences of Power Outages and Unplanned Downtime

By proactively preventing outages, you can insulate your organization from a wide array of problems that are caused by unplanned downtime. These consequences include:

Decreased Productivity

The most obvious impact of unplanned downtime is decreased productivity. When your industrial manufacturing facility goes offline, production grinds to a screeching halt. Depending on the size of your organization, this decrease in productivity could cost you thousands of dollars per minute.

Consequences of Power Outage

Unfortunately, problems do not end there, as this decline in production will create a cascade effect that permeates throughout your entire business model. If the outage is prolonged, shipments will be delayed, distribution centers will fall behind, and your clients will be left waiting for products that they desperately need.

Damaged Equipment

If you are lucky, your unplanned outage will only cause a temporary decline in productivity.

However, the consequences can be much more severe. Often, power outages can create surges that damage costly equipment. If this happens, then you will be feeling the effects of the unplanned industrial distribution disruption for months or years to come.

Lost Revenue

Naturally, a decline in productivity and equipment damage will result in lost revenue. This lost revenue can be particularly detrimental to business continuity if you are already operating with razor-thin margins or are seeking to bounce back from a turbulent fiscal year.

Compromised Staff Safety

When your manufacturing facility suddenly goes offline or a piece of equipment fails, it can endanger your most valuable asset: your staff. As a facilities manager, your staff trusts you to create a safe and secure working environment. Failing to do so can not only put their lives at risk, but it can also open you up to substantial civil liability.

Unturned Inventory

Finally, unplanned outages can result in massive amounts of unturned inventory. This inventory will create a backlog of shipments that will take days or weeks to recover from. Unturned inventory can be particularly difficult to offload in light of current events and widespread shipping delays.

Which Industries Would Be Most Affected by a Power Outage?

While all industrial companies should be proactive when it comes to preventing downtime, certain sectors are particularly susceptible to the impacts of a power outage.

These include businesses that are operating within the manufacturing, food and beverage, transportation, and safety and security industries. If businesses in these sectors experience an outage, revenue will plummet, and lives may be placed in severe danger.

Common Causes of Downtime

Now that we have outlined the consequences of unplanned outages let’s examine the most common causes of downtime. While the exact reason for each outage will vary, almost all incidents can be linked to one or more of the following issues:

  • Lack of risk mitigation strategies
  • Failure to monitor and maintain equipment
  • Employee error
  • Unclear policies or guidelines

By addressing these common causes of outages, your organization can become more successful at preventing downtime and protecting business continuity.

industrial distribution shutdown

Prevent Unplanned Downtime with DXP’s Equipment Monitoring Technology

As you can see, unplanned downtime can have a negative impact on industrial distribution and overall productivity. Fortunately, DXP’s equipment monitoring technology offers the perfect solution for preventing downtime and outages.

If you would like to learn more about how DXP can help your organization mitigate the risks of outages and downtime, contact our experts today.